Multifamily Lending Program

The Multifamily Lending Program (MLP) provides long-term, permanent financing for multifamily rental housing developments that serve low- to moderate-income residents. It is ineligible to be used during construction. For proposed MLP loans that do not involve Housing Credits, developers/owners that are new to OHFA must partner with an organization with whom OHFA has an established and satisfactory relationship.

Rent and income restrictions that mirror the Housing Credit program are required during the term of the loan. All other Housing Credit compliance monitoring rules also apply. Strong preference will be given to organizations with considerable and successful experience with OHFA programs and that have sufficient staff capacity, substantial financial resources and an excellent credit history.

There are three loan categories under the MLP: New LIHTC MLP loans, which work in conjunction with the Housing Credit program by coupling the MLP with projects receiving new allocation of 4% or 9% Housing Credits; Existing LIHTC MLP loans, which are targeted toward existing developments previously funded under the Housing Credit program and are between Year 10 and Year 20 of their Compliance/Extended-Use Period, have minimal capital needs and no uncorrected non-compliance issues; and Choice MLP loans, which are directed toward unique developments that help to meet OHFA's goals in achieving its affordable housing policy objections, but are not coupled with the Housing Credit program.

Available Funding and Related Programs

For additional information, refer to the Multifamily Lending Program Guidelines:

Terms

The maximum loan amount is $3 million. Exceptions may be permitted, contingent on approval by the OHFA board.

Organizations are limited to $6 million in total loan funding and three loans per fiscal year. Exceptions may be permitted based on available funding capacity and are contingent on approval by the OHFA board.

Interest Rate: New LIHTC MLP: Maximum of 4.25 to 4.75%, based on the needs and risk factors for each loan. This rate will apply to New LIHTC projects that apply for MLP funding during calendar year 2018 only. Non-Recourse. Existing LIHTC MLP: 10 Year Treasury Rate + 3%. Recourse debt, requires a corporate guarantee. Choice MLP: 10 Year Treasury + 3%. Recourse debt, requires a corporate guarantee. An additional risk premium may be added based on OHFA's evaluation of project risk and collateral.

Forward Commitments: MLP loans are rate-locked at the time of Board approval, which may occur long before the loan is ready to close.

Term and Use Restriction Period: Up to 17 years. MLP loans funded with R-TCAP require a 15-year use restriction period.

The amortization period is up to 30 years.

Maximum LTV: Up to 85% percent loan to value (LTV) for New LIHTC MLP and Existing LIHTC MLP loans, based on OHFA's evaluation of risk and collateral. Exceptions may be permitted for Choice MLP loans with additional collateral, contingent on approval by the OHFA board.